Fresno, California – Many wage earners across America will be the beneficiaries of higher minimum wages come January 1.
Datatech wanted you to know that in just over three weeks, the states that analysts say had higher wage proponents and had the political momentum to get legislation passed, will continue to see increases in their minimum wages. These changes are primarily occurring in the west and upper mid-west and northeast.
Here’s a rundown of states with minimum wage increases on January or July 1:
2016 saw Senate Bill 3 signed into law to incrementally increase the minimum wage to $15 per hour by 2022. Beginning January 1, 2018, employers with 26 or more employees will be required to pay non-overtime-exempt employees $11.00 per hour while businesses with 25 or fewer employees will have to pay their non-exempt employees $10.50 per hour.
Western Growers General Counsel, Jason Resnick says, “The increased minimum wage rate also impacts the salary thresholds for exempt executives, administrators and professionals under California law, increasing it to $45,760 annually for employers with at least 26 employees, and $43,680 for employers with 25 or fewer employees. Employers should also be aware that a number of cities, such as San Francisco, Emeryville and Oakland, have higher minimum wage rates than the state.”
Beginning July 1, 2018 Oregon’s standard minimum wage will be $10.75, the Metro wage will be $12.00 and the Non-Urban wage will be $10.50.
In 2016, the Oregon passed Senate Bill 1532 that established a series of annual minimum wage rate increases beginning July 1, 2016 through July 1, 2022. Starting July 1, 2023, the minimum wage rate will be indexed to inflation based on the Consumer Price Index (CPI), a figure published by the United States Bureau of Labor Statistics.
In addition to a new standard minimum wage rate, the law sets out a separate rate which will apply to employers located in the urban growth boundary of a metropolitan service district. Only Portland has urban growth boundary. A third rate applies within certain “non-urban” counties.
The minimum wage will be $11.50 per hour in 2018. And the new Paid Sick Leave law goes into effect on January 1, as well.
- The minimum wage applies to all jobs, including agriculture.
- Employers must pay employees age 16 and older at least $11 per hour, that began this year.
- Employers are allowed to pay 85 percent of the minimum wage to employees under age 16. For 2017, this rate is $9.35 per hour.
- Seattle, Tacoma, and the City of SeaTac currently have higher minimum wage rates. The local rate applies if it is higher than the state minimum wage rate.
- The initiative does not change overtime pay requirements.
- The minimum wage will increase annually to $12 in 2019, and $13.50 in 2020.
Proposition 206, the Fair Wages and Healthy Families Act, will increase Arizona’s minimum wage to $10.50 per hour on January 1, 2018; $11.00 per hour in 2019; and $12.00 per hour in 2020. In 2021, the Arizona minimum wage will increase each year by the cost of living.
Amendment 70 became effective on January 1, 2017, where Colorado’s minimum wage had been increased to $9.30 per hour. The Amendment allows an increase annually by $0.90 each January 1 until it reaches $12 per hour effective January 2020. So for 2018, the minimum wage in Colorado will be $10.20.
Voters in Montana sought an increase in the minimum wage to $10.10 per hour in 2018, that didn’t go over with the public, though. So, as is their practice, Montana will increase the 2018 minimum wage from $8.15 to $8.30 due to a mandated cost of living bump.
Other states with minimum wage changes for January 1, 2018 are South Dakota:$8.85; Minnesota:$9.65; Michigan:$9.25; Ohio:$8:30; New York:$10:40; Vermont:$10.50; Maine:$10:00, Rhode Island:$10:10 and New Jersey:$8:60.
Many states have localities that are higher than the minimum wages mandated by the state, those will usurp any state mandated minimum wage.
Analysts say the challenge of raising minimum wages is that industries, including agriculture, will compensate by passing on higher prices to consumers. Not necessarily what consumers want to hear, but the reality for industries and it’s employers saddled with higher costs of doing business.
Datatech serves the agriculture industry across America with time-saving and efficient cost-accounting and payroll software. Our suite of software products include The Farmer’s Office, The Labor Contractor’s Office, Human Resource Management with document management and The Shipper’s Office that provides inventory and sales accounting in real-time with state of the art traceability solutions.